When defining the interest conditions for a loan product with a floating interest rate, you must apply a base rate. Additionally, you can configure an interest rate cap to limit the floating interest rate and set up a dynamic penalty.
To configure interest rate settings with a floating interest rate, access the loan product configuration page:
Go to Loans > Products > Loan products.
Click on the Add new product.
Scroll to the Interest conditions.
Select the Interest type parameter as Floating.
To complete the setup of the interest conditions for the loan product, choose one of two options:
Do not select the apply global cap checkbox.
Select the reference rate. Note that the to the Tuum system prior to configuring the loan product.
Select the values for other mandatory parameters.
Select the apply global cap checkbox.
Select the adjust margin according to cap option if you want to adjust the margin value according to the interest rate cap within the loan origination process.
Select the values for other mandatory parameters.
Find more information about setting the loan interest conditions parameters in the .
Select an applicable interest rate cap. Note that the to the Tuum system prior to configuring the loan product.
